One of the greatest benefits of the VA Home Loan Program is the VA Interest Rate Reduction Refinance Loan (VA IRRRL).  This is more commonly referred to as the VA IRRRL.  The VA IRRRL is a streamlined refinance program allowing borrowers to take advantage of lower mortgage interest rates available.

To qualify for a VA IRRRL, a borrower must have an existing VA loan and be lowering the interest rate with the refinance.  Being a streamlined program, there is far less documentation required from the borrower to qualify than the typical rate and term refinance transactions.   

When deciding whether or not to refinance your current loan, it is essential to do some research before moving forward.  There are several key misconceptions out there about refinancing. The number one misconception we hear is, “I have to lower my interest rate by at least one percent to get a benefit.” Maybe this is true in some instances, but it could cost people thousands by not doing more research.

For example, a $50,000 loan vs. a $200,000 loan will have significantly different savings from a one percent drop in rates. Also, the closing costs as a percentage of the loan amount are much greater for a $50,000 vs. a $200,000 loan and will make the breakeven point much longer.

These three pieces of information will allow you to determine your breakeven point and whether a VA IRRRL is right for you.

  1. How long do I intend to stay in my home?
  2. How much will I save per month by refinancing?
  3. How much are my closing costs going to be to refinance?


Getting started is easy. We offer very competitive rates, have great service, and always close on time.


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Capital City Mortgage
237 S 70th St. Ste. 206
Lincoln, NE 68510

(402) 489-2099